HDFC Bank Q3 net meets forecast, up 25%; asset quality firm

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26 Aug, 2025 12:21

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Moneycontrol Bureau

HDFC Bank, the second largest private sector lender in India, matched street expectations on December quarter net profit, supported by other income. However, net interest income for the quarter was below consensus forecast.

Quarterly net profit grew 25 percent year-on-year to Rs 2,326 crore from Rs 1,859 crore while net interest income, the difference between interest earned and interest expended, rose 22 percent to Rs 4,635 crore from Rs 3,799 crore during the same period.

According to a CNBC-TV18 poll, analysts had expected the bank to report net profit of Rs 2,324 crore and net interest income of Rs 4,723 crore.

Other income (non-interest revenues) climbed 11.4 percent year-on-year to Rs 2,148.3 crore.

Total expenses jumped 15 percent on yearly basis to Rs 8,850.1 crore due to higher other operating expenses in the quarter gone by.

Net interest margin for the quarter declined further to 4.2 percent, down 10 basis points compared to a year ago period and previous quarter. In its earlier quarter (September 2013), the margin was down 30 basis points sequentially.

Asset quality

The bank's asset quality was stable during December quarter as gross non-performing assets (NPA) fell 10 basis points sequentially to 1 percent and it was unchanged compared to a year ago period.

Net NPAs as a percentage of net advances remained unchanged on sequential basis at 0.3 percent but that increased 10 basis points compared to a year ago period.

In absolute terms, gross NPAs increased 24 percent year-on-year (2.6 percent quarter-on-quarter) to Rs 3,017.84 crore while net NPAs surged 60.8 percent Y-o-Y (4 percent Q-o-Q) to Rs 797.34 crore during December quarter.

"Total restructured loans (including applications under process for restructuring) were at 0.2 percent of gross advances as of December 31, 2013 as against 0.3 percent as of December 31, 2012," the bank said in its release.

With asset quality remaining stable during the quarter, provisions and contingencies declined 4 percent (up 0.75 percent sequentially) to Rs 388.84 crore in Q3FY14 from Rs 405 crore in Q3FY13.

Deposits and advances

Total deposits grew 22.9 percent year-on-year to Rs 3,49,215 crore, which included USD 3.4 billion being deposits raised under the RBI window for attracting Foreign Currency Non-Resident (FCNR) deposits.

Advances during the same period too rose 22.9 perent to Rs 2,96,742 crore. "The domestic loan growth was contributed by both retail and wholesale segments, with retail loans growing by 13.6 percent and wholesale loans by 22.1 percent resulting in domestic loan mix between retail : wholesale of 54:46," the bank said.

At 14:02 hours IST, the stock was trading at Rs 667.95, down 0.89 percent amid large volumes on the BSE.